GUEST POST: Four Rental Scam Prevention Strategies

Property scams are common on the web. Both landlords and tenants are susceptible to illegitimate listings and clients, so it is always important to proceed with caution. Use these four strtegies.

1. Check Sources

Make sure that the property in question is actually up for rent. Scammers will take advantage of vacant homes due to foreclosure and attempt to rent out properties that don’t belong to them. If the home is bank-owned, a renter can be served with a trespassing notice and be kicked out, even if they thought they had been paying rent. The first step a renter should take is completing a background search on the property and making sure that the person they are in communication with is the actual owner or agent.

2. Watch for Indicators

Never agree to complete a wire transfer in exchange for the keys to a property. Often times, a renter will provide the payment or deposit money and not receive keys in return. If renting out a property, be careful of those who claim to be any type of diplomat, military personnel, or the like. Usually that type of alias is used to earn a landlord’s trust. Finally, overseas renters, especially those who claim to be moving to the United States to work for well-known organizations, should be dealt with carefully. The renter may send in a cashier’s check that is more than the rent itself, so when the landlord sends back the overpaid funds, they find out that the original check was a fake and are out the difference.

3. Use Reputable Services

Refer to a trustworthy website like Zillow to find the perfect rental property or tenants. Landlords pay a subscription fee to weed out old listings and potential scam artists. Additionally, renters can sort a plethora of local data to help them decide which listing best fits their needs.

4. Proceed with Good Judgment

If there is a listing for a 4-bedroom home at only $500 per month in an affluent neighborhood, it is probably a scam. Usually con artists will list low rent prices to try and force the interested renter to put the property “on hold,” scaring them into paying up front. Often times, a credit card or social security number is requested in these types of scams, so never give personal information away no matter how great the deal looks. Be wary of those who insist on online-only communications and transactions.

Using these precautions will help renters and landlords avoid rental scams and potential monetary losses. Of course, always rely on a gut feeling. Even if the situation doesn’t fall into one of these categories, don’t proceed if it seems fishy. Use the internet to research individuals and form legitimate business relationships.

By: Tali Wee of Zillow.com